Shahbazov talks on risks for oil producers from rising prices

Azerbaijani Energy Minister Parviz Shahbazov has refuted the notion that rising oil prices are a significant benefit to oil producers.

According to a Report correspondent from Antalya, he made the statement at a panel session on energy at the Antalya Diplomacy Forum.

"There's a perception, regarding high prices (oil - ed.), that producers derive significant benefits from them, but this isn't entirely true.

That's because, as a rule, oil-producing countries, or hydrocarbon countries in general, have sovereign wealth funds that also invest in global financial markets and various assets. When the stock market falls, we, of course, begin to feel it too – just as we do through our import operations. So, it certainly has an impact," the minister said.

He added that sometimes large producing countries believe they are insured against this.

"This is a serious issue, as we could ultimately lose even more than we gain from high oil prices-as I've already said, due to the decline in stock markets. This is precisely why we have always advocated for balanced oil prices, which is important for both producing countries and consumers, as well as for the oil and gas industry as a whole," Shahbazov noted.